Ag2School Tax Credit changes give boost to Goodhue residents
After passing a $29.9 million school bond referendum in November, Goodhue residents will be getting more relief from the state than they previously thought.
The Ag2School Tax Credit will increase from 40% to 50% for taxes payable in 2020, with the amount per year increasing by five percentage points in 2021 and 2022.
By 2023, that amount will be as high as 70%.
A news release from Goodhue Public School District Superintendent Evan Gough stated the change comes from the recent legislative session that included changes to the Minnesota property tax laws.
The tax credit was started to give relief to farmers and agricultural land owners in rural communities that were saddled with a large portion of the costs associated with school bond referendums.
In 2018, the district was informed the tax credit would only pay for a little more than a quarter of the total project costs. With the increase to the tax credit, it will now cover 44.5% of the total project costs.
Gough also stated in the release that agricultural land owners would be responsible for 37.63% of the total project costs. Now that will lower the costs to 22%.